Real Estate Investors Profit Increases In 2017, Lifts Dividend

20th Mar 2018 10:47

LONDON (Alliance News) - Property investment company Real Estate Investors PLC said on Tuesday pretax profit in 2017 rose 38% on the previous year as it boosted its annual payout to shareholders.

Pretax profit rose to GBP11.3 million in 2017 from GBP8.2 million in the previous year, as the company captured some valuation improvement and the benefits from the sale of assets where it had completed asset management initiatives.

The investment company reported a rise of 19% in underlying profit pretax to GBP6.2 million, which it said is the highest underlying profit ever recorded by the AIM-listed firm. It has the potential to grow further, it said, supporting its future dividend policy.

The company posted revenue growth of 10% year-on-year to GBP14.9 million from GBP13.5 million.

Acquisitions of investment properties totalled GBP18.4 million during the year while rental income for the year was up 10% to GBP14.9 million, but the full benefit of these purchases will be realised in 2018, Real Estate Investors said.

Investment properties were revalued externally at the end of 2017 and generated a surplus on revaluation of GBP4.2 million.

Shareholders' funds increased to GBP127.1 million from GBP121.2 million and the basic net asset value per share increased to 68.2 pence from 65.0pence, while EPRA net asset value grew to 68.9p from 66.2p.

The company already paid three quarterly dividends of 0.75p during 2017 and has proposed a final dividend of 0.875p. This takes the total to 3.125p, up 19% year-on-year.

Dividend payments will continue to be paid quarterly with the first three quarterly dividends for 2018 being 0.875p, with a final dividend in the fourth quarter to be confirmed, the company said.

"The continued macroeconomic uncertainty provides an ideal environment in which to secure further criteria compliant assets and make strategic sales by taking advantage of a strong investor market and our privileged network and market reputation. We are fortunate to be operating in a vibrant and expanding regional economy that is set to re-establish itself as a major national and international economic powerhouse," said Chief Executive Paul Bassi.

"We remain confident that we will extract further value from the existing portfolio and see our rental income and portfolio grow further", he added.

Real Estate Investors shares were up 6.5% at 57.00p per share on Tuesday.

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